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A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be$100,000 per year. At an interest rate of 6%, determine the capitalizedcost of the facility.

S Information System and Engineering

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A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be$100,000 per year. At an interest rate of 6%, determine the capitalizedcost of the facility.

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